On Our Radar

On Our Radar

Durable Goods Orders Unexpectedly Fall in May

Orders for long-lasting U.S. manufactured goods unexpectedly fell in May, suggesting an anticipated rebound in growth this quarter could fall short of expectations, even as a measure of business capital spending plans rose.

The increase in core capital goods points to some pick-up in business spending, which should support second-quarter growth.

While the economy has rebounded from its winter-induced slump in the first quarter, data such as retail sales and housing starts suggest growth could fall short of expectations. Growth forecasts range as high as a 3.6 percent annual pace. The economy shrunk at a 2.9 percent rate in the first quarter.

Core capital goods shipments rose 0.4 percent last month. Shipments of core capital goods are used to calculate equipment spending in the government's GDP measurement. They had declined 0.4 percent in April.